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Harley-Davidson, Polaris get high marks from RBC analyst

March 8, 2012

Harley-Davidson remains "a compelling 2013 story based on potential for accelerating production growth, margin expansion and EPS growth," according to a research note provided to Powersports Business by RBC Capital Markets analyst Edward Aaron. The report is based on takeaways from meetings with OEM management teams at the annual RBC Restaurant & Leisure Conference last week. Harley-Davidson and Polaris Industries were the powersports OEMs in attendance.

The report says discussions with Harley "were focused on efforts to grow demand in both the U.S. and internationally, as well as near-term dynamics related to restructuring activities. Management acknowledges the complexity of its pending SAP implementation but feels well prepared to execute."

The report also notes that "growing traction in Brazil leaves us incrementally more positive on the emerging markets growth opportunity."

Polaris Industries, meanwhile, continues to be a "beat and raise" story." The report says "positive trends in ORVs are continuing, and new products are performing well. The snowmobile season finished on a low note, which will hurt Q1 PG&A sales to some extent but shouldn't materially change the order outlook for 2012."

The report goes on to say that "international expansion and adjacency businesses continue to show progress and remain important long-term drivers."